Only certain funds are allowed
During the growth period, a Trump Account can hold only what the IRS calls eligible investments. Notice 2025-68 describes these as mutual funds or exchange-traded funds that track an index of primarily U.S. companies, such as the S&P 500, do not use leverage, and charge annual fees and expenses of no more than 0.1% of the balance.
What that means for choices
You will not pick individual stocks, bonds or sector funds inside the account during the growth period. The choice is mostly between broad U.S. stock index funds offered by the account provider. That keeps the account simple, but it also means the balance will rise and fall with the U.S. stock market.
Small fees still add up
Fees are capped low, but they compound. Using the calculator with $1,000 a year from a child born in 2026 and a 7% return, a 0.02% fee ends at about $36,191, while a 0.10% fee ends at about $35,889. The difference is modest, but it costs nothing to check the fee before you choose.
Choosing a return to plan with
No one can tell you what the market will return over 18 years. Instead of using one number, try a few in the calculator, for example 4%, 6% and 8%, and plan around a result you would be comfortable with. A lower assumption makes the plan easier to meet.
Questions to ask a provider
Before you move money, ask these questions.
- Which eligible funds do you offer, and what are their expense ratios?
- Are there any account fees beyond the fund's expense ratio?
- How will you report basis and contributions each year?
Sources and further reading
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